Demand for energy is only expected to grow in the near future due to global population growth which result to a rise in environmental concerns with the diminishing supply of fossil fuels along with the rise of greenhouse gas emissions. Biofuel production from microalgae biomass has been proven to be a viable alternative for fossil fuels; however, challenges are faced regarding its economic sustainability. The integration of processes to yield various high-value bioproducts have been implemented to raise profitability and sustainability. Incorporating a circular economy outlook, recirculation of resource flows is maximized to satisfy economic and environmental sustainability through waste minimization. Previous modelling studies have not looked into the opportunity of integrating continuous recirculation and reuse of resources. In this work, a novel multi-objective optimization model is developed centered on an algal biofuel supply chain that simultaneously optimizes cost and environmental impact, integrates inputs and processes aimed towards a closed loop process flow, and adopts the principle of resource recovery and recirculation. A case study is solved as proof of concept and to illustrate the design methodology, optimal solutions based on economic and environmental performance are analyzed. Scenario analysis is also performed to analyze system behavior under varying conditions.